Enersys · NYSE:ENS
Enersys — Investor Day (April 2013)
67 slides from Enersys's investor day presentation, Apr 2, 2013
Slide 1: EnerSys Investor Day April 2, 2013
Exhibit 99.1 Enersys power/full Solutions Investor Day April 2, 2013 Investor Day April 2, 2013
Slide 2: John D. Craig, Chairman, President & CEO
Enersys power/full solutions John D. Craig Chairman, President & CEO Investor Day April 2, 2013
Slide 3: Forward-Looking Statements
Forwardmanagement number development quality respectively, investor quarterly/annual of call, -Looking risks filed andand our report. most implementation, with Information uncertainties andrecent the Investor key SEC, employees quarterly/annual This along Day that intellectual presentation April cou
Slide 4: Agenda
EnerSys Vice am Overview 11:10 President Investor am: 12:10 Todd Finance pm Day Sechrist 1:00 Agenda & pm:President, Lunch 8:00 CFOam Financial andAmericas 9:00 Management am: Results Registration Americas 10:00 Q&A Overview am and10:30 Breakfast in product 11:10 am: Dr. am 9:00 display Rhod
Slide 5: The Company
TheCompany leader: with countries positioned the World > 25% Adjusted 25% cost s share Largest s revenue Reserve structure inEPS Industrial a $7.9 from of Power to$2.75/share prepare billion unique Battery segment. market for lead- Company was any As-adjusted in acid potential a CY nine premium 2
Slide 6: Management
Management Controller Technology Tom O NeillAge: &Robert Organization Age: 52 Yrs. 47 Marley Age: Of John Svc. VP 47 Age: & 2Craig Rod Assistant 56Chairman, Evans Executive Treasurer ToddPresident VP Sechrist Treasurer Procurement & David CEOAge: Shaffer Age: Engineering 53 Age: 61Mark Yrs. 60Yrs. T
Slide 7: Creating Shareholder Value
Creating 9.5% 4.0 Day Billions April Extreme Shareholder 2,$2013 400 customer Millions 3 Value focus/best 10.0% BoughtContinue value Bought Growth Bought like the via23 past acquisitions Yuasa NewHawker products, of battery other technologies $400M companies Sales and Consolidation $575M application
Slide 8: Our Earnings Have More Than Doubled In Recent Years
Our Earnings Day April 2, 2013 Have4More Than Doubled In Recent Years! ($ Millions, Except Per Share Amounts) +46% -22% Sales Net * +159% +1% - GAAP Earnings EPS n No Net * *End of Dec. F 13 Investor
Slide 9: Underleveraged
EnerSys Net Debt/LTM Underleveraged EBITDA 3.0x Net Debt/LTM requires $800 EBITDA million(1) more 0.5xdebt Need(2)toAs invest defined in our in our future U.S. and Credit haveAgreement debt capacity as of to 12/31/12 do it. For Assumes example:$0 Netadditional Debt/LTM EBITDA EBITDA Investor 2.0x re
Slide 10: Capital Allocation
Capital Reserve, to years ourEvaluate core Allocation A&D, battery increased andCapital business Motive buybacks Expenditures markets Benefitinfrom Look the$50-75 our future for strong good Dividends million values distribution annually and Consider expand channels Acquisitions a modest ourSynergies
Slide 11: Energy Storage Technologies
Energy Zinc SODIUM-NICKEL Lighter $270/kWh Storage Investor& $550/ Day Generation CHLORIDE April kWh2,Li2013 Technologies IonZebra battery 7 Battery $850-5000/ Size,System Weight kWh Lead andNickel-Zinc Acid Cost Considerations $700 /$250/ kWh kWh $150/ 400 Nickel kWh e) 350 Flow metal (Wh/litr batt
Slide 12: New Product with Automation Applications
New Productwith Automation Applications batteries is Port theTechnology trend of theAutomated future Investor Guided DayVehicle April 2,Systems 2013 8 (AGV) Automated Guided Vehicle Systems (AGV) good example of superior benefits from TPPL technology
Slide 13: New Product Development Opportunity
New Product Power Opportunity Development chargingLarge versus scale 4-6 energy hours ofstorage charging Potential One battery $10 billion couldmarket run forUtilize 3 shiftsany battery type Investor Day April 2, 2013 Motive Power TPPL 2V First EMEA offering of TPPL in Motive
Slide 14: Global Industrial Battery Market
CY 2011 15% batteries Asiaand Global Asia chargers. Other Industrial Industrial It excludes LeadUPS Acid the24% Battery aerospace Forklift Market &30% defense $7.9 Trucks Billion market 89%(Significant (estimated 11% OtheratGrowth) 46% $1 toTelecom $2Reserve billion) Note -and $4.9 Market service Bi
Slide 15: Leading Market Positions
Leading East estimates service Penn revenue. Market basedonthe GS Yuasa Positions Investor Hoppecke markets Day #1 Worldwide April where Northstar 2,EnerSys 2013 Market Crown 11participates. Share Narada-25% Coslight Market Reserve Saft sizeandshare -East $4.9Penn Billion are CYfor Motive 2011 batte
Slide 16: Regional Market Share
Regional East PennMarket Hoppecke Share Narada (25%Northstar Global Share) Fiamm Americas ReserveEMEA PowerAsia China$2.4 Shoto Billion C&D $2.8 Northstar Billion Leoch $2.7 Billion CrownEnerSys GS Yuasa #1 Zibo EnerSys Investor #1 EnerSys Day April #5 36% 2, 2013 32%127% Major Competitors Exide Exi
Slide 17: Diversified Business Model
Diversified 20% motive 7%power Asia Business Other is primarily 9% Model Motive ground FY12 Power handling Net Sales 52%andReserve of $2.3 mining Billion Power equipment. 48% End Markets Note Other Diversification reserve powerGeographic includes aerospace Diversification & defense, Telecom utilitie
Slide 18: Michael J. Schmidtlein, Senior VP Finance & CFO
Michael J. Schmidtlein Senior VP, Finance & CFO Investor Day April 2, 2013
Slide 19: Nine Months Net Sales by Region and Line of Business
F 13-4% -1% 4% 2% Nine Total -7% Months Asia Net $180 Sales $152 $1,705 By Region $28 $1,691 19% & Line 15% $15 1% Of - 5% Business 2%-1% - 3% Total ($ -4% Millions) Net Note Sales - Rounding Fav/(Unfav) $1,705 $1,691 mayF’13 cause $15 F’12 1% minor $2% % differences. VolumePrice - 3% -4% Motive Pre
Slide 20: Nine Months Earnings
F 13Pts. 2.8 Outstanding NineBook Months 48.610 Tax Rate Net 49.507(0.897) Earnings 28% 24%and ---2% Net EPS(Millions) Earnings ($ Millions, -Note As Except Adjusted - Rounding Per$133.8 Share may$101.7 Amounts) cause minor $32.1 Fav/(Unfav) 32% differences. As %F’13 Net Presented F’12 Sales$78%. %
Slide 21: Gross Profit Margin
Gross 25.0% EURO F09 $0.52 $1.41 LME F09 and $0.69 $1.35 Profit $1,000 15.0% F09 Euro$0.93 $1.33 Margin F09 Actual $600 GPF10 $1.05 $1.28 $Sales 30.0% $113 GP F10 $1.00 $1.26 % ss$109 F10 $1,200 25.0%25.0% Gro$1.30 $0.88 F10 $102 Ne$F11 tMillions Actual $0.93 10.0% $90F11 24.1% $78 $1.08 GP F11 $400
Slide 22: Gross Profit Margin
Gross $1,000 Sales F10 $1.05 24.5% Investor F10 ss $1.00 Profit 25.0% 25.0%25.0% Gro Day F10$0.88 Margin Ne April F10 25.0% t 10.0% F11 $0.93 2,30.0% 24.1% 25.8% 2013 F11$400 $1.08 F11 4$1,200 24.5% 24.0% $$1.16 F11 59223.0% $GP F12 548 Millions $1.17 $F12 $113 569 22.8% $1.13 F12 547 25.0%25.GP0%Ta
Slide 23: Earnings Results
Solid $2.50 $1,000 Up earnings UpEarnings $150 Up $60 results Down(EPS $1.92 $41 inexclude $500 Challenging $2,027 $30 Growth highlighted $134 $- FY07 Environment 17% $2.00 FY08 35% items $1,973 3% FY09 and Net $1,964 20% FX FY10 Sales 424% $1.42 8 FY11 1Adj. 16% -- 2$126 Net FY12 21% -4Earnings $2.
Slide 24: Financial Position Highlights
Financial from Shareholders’ Operations Position Equity $135.5 Highlights 17.9% $204.2 16.4% ($Capital Millions) Investor Expenditures Nine DayMonths April$37.6 2,Full 2013 $48.9 Fiscal 6 Leverage Year Fiscal Ratio Year (per 2013 US2012 CreditCash Agreement) & Cash Equivalents 0.5X 0.8X Primary $228
Slide 25: Leverage Conservative
Leverage conservative and consider Underlevered balance dividends sheet (1) at .5X As Allow defined Netfor Debt/LTM new in our products U.S. EBITDA Credit development, (1) Facility Widerasadditional net offor 12/31/12. acquisitions acquisitions, Investor Increase higher Day April opportunities capit
Slide 26: Dr. Rhodri Evans, VP Global Technology & Engineering
Dr. Rhodri Evans VP Global Technology & Engineering Investor Day April 2, 2013
Slide 27: New Product Initiatives
New Product Initiatives Investor Day April 2, 2013
Slide 28: New Product Introduction Process
EnerSys new Global product engineering Newintroduction Product must Introduction provide (NPI) process theCrucial confident within we match approval EnerSys theDisciplined for business new products case NPIand process, &the newengineering technologies. one globalcapability team Investor driving, toD
Slide 29: TPPL Applications
Automated food & high & frequency beverage, Guideddistribution charger Vehiclesolutions (AGV) EnerSys Applications: from thin EnerSys plate, Industrial pure Estimated lead technology motive marketpower size(TPPL) inapplication threemaintenance years: Solutions $200free million require solutions glob
Slide 30: Port Technology
Port Technology Fuel monitoring Renewables) savings, -comms Investor reductions AGV system Day Solution in April carbon ~ 50% NEW 2,dioxide of 2013 CO2-quantity GROWING 3 emissions MARKET versus & changes diesel SECTOR toAGV: electric 50% automated drive CO2systems -reduction shipping arecontainer k
Slide 31: Battery-AGV Example
Battery -AGV (automated guided vehicle) Example Investor Day April 2, 2013 4
Slide 32: Battery Change and Charging Station
Battery <5 height -Change ~ 40and ft. minutes ChargingOptimized Station length current ~120 network ft. Battery-change utilization through and charging intelligent station charging for battery-AGV system Investor widthDay ~ 65 April ft. It2,enables: 2013 5 Decoupling of driving and loading Fully
Slide 33: Motive Power Opportunity
Motive matched operation Day 6 April Power EnerSys (?always 2, TPPL 2013 HFavailable’) 2V charger — XFC ?KEY Opportunity Technology ADVANTAGES: charging Marketsuitable ?Maintenance Maintenance No topping-up Free free operation Motive Can Power beDischarge operated $450 at as million partial required
Slide 34: XFC 2V TPPL System
XFC 2V TPPL ? SYSTEM MAINTENANCE FREE SOLUTION ? ENERGYInvestor PACKAGE Day XFC 7 April Battery 2, 2013 with Low Voltage Wireless Data & CHARGER with TPPL Inside Alarm Control Module WIRELESS CONTROLS
Slide 35: Typical Motive Battery Room - Flooded
Typical Motive Battery Room - Flooded Investor Day 8 April 2, 2013
Slide 36: With XFC Maintenance Free
With XFC Maintenance Free Investor Day April 2, 2013 9
Slide 37: XFC 2V Multishift Friendly
XFC 2V MULTISHIFT FRIENDLY April 2, 2013 TECHNOLOGY FLEXIBLE AND HEAVY IN? OPERATIONS Summary DUTY APPLICATIONS Benefits REDUCED PREMIUM AMAINTENANCE SERIOUS HIGH TECH COMPETITOR PRODUCT EQUIPMENT TO PACKAGE LITHIUM NO BATTERY FOR AT MUCH MPHANDLING APPLICATIONS LOWEROPERATIONS COSTS THEREDUCED ONLY
Slide 38: Energy Storage
Energy Storage $270/kWh $900/kWh density (Wh/kg) Silver-Zinc SODIUM & Lighter -NICKEL Li Generation Investor Ion battery CHLORIDE Day Technologies $550/ April kWh 2,Zebra 2013 Size, $850-5000/ Battery 11WeightSystem kWh and Cost Nickel-Zinc LeadConsiderations Acid $700 $250// kWh 400$150/ Nickel
Slide 39: Nickel Zinc Technology
EnerSys point three years closer Nickel $450 to lead Zinc million acid Technology & (Displace without Nickel Nickel the Zinc Cadmium complexity technology plus ofincremental isli-ion an attractive battery sales systems rechargeable prospects) Solution Investor maintenance for various Day free 12
Slide 40: OptiGrid Containerized Battery System
EnerSysglobally million temperature arbitrage? OptiGrid Investor controls Potential Solution Day inside 13inApril Containerized the 10-20 container 2, years 2013 between Demonstration Battery $200-$600 based system System billion coupled located Leverage in with Vermont, aexisting PowerUSAConversion
Slide 41: Lithium Chemistries
EnerSys Investor Secondary globally Lithium (Chargeable) Day Chemistries 14Lithium AprilPrimary 2, Applications: 2013(non recharge) Chemistries: Batterye.g. Applications: Rocket Launchers, Chemistries: Satellites, Missiles, A&DA&D Radio, ground Drones, applications, Lithium Ion Space Niche Suits Ind
Slide 42: Todd Sechrist, President Americas
Todd Sechrist President Americas Investor Day April 2, 2013
Slide 43: EnerSys Americas
EnerSys Americas Investor Day April 2, 2013
Slide 44: Americas Market Share
Market It excludes Share theAmericas aerospaceCY & 2011 defense Source: market BCI, andindustry service revenue. reports and Investor management Day April estimates 2, 2013based 1 on the markets where EnerSys participates. Market size and share are for batteries and chargers only.
Slide 45: Who's Chasing ENS
Who’s chasing ENS Investor Day April 2, 2013 2
Slide 46: Americas Operations
CLEVELAND, Americas BRAZIL RP Operations andOHMPMPBUENOS HAYS, Advanced KSAIRES, RPHF WARRENSBURG, Chargers ARGENTINA RICHMOND, RP MOandTPPL MP KY MP for RP OOLTEWAH, and A&D TIJUANA, TN MP MONTERREY, MEXICO RP MEXICO LONGMONT, MP and CORP Lithium SUMTER, A&D SC HORSHAM, MP Steel Fabrication PA Lith
Slide 47: EnerSys Americas
EnerSys Americas .WE ARE Undisputed market leader Global Power with local reach Sustainable differentiators Manufacturing platforms on all continents. Investor Day April 2, 2013 4
Slide 48: Making the Handling Move
Making the handling Source: MotiveITA, Market Company Moveestimates. Organic growth Investor driven Day April from GDP 2, 2013 growth 5 Sustainable push to lower AC operating expense Trends to higher voltage vehicles Electrics now 60%+ of all material
Slide 49: What's Fueling the Americas Reserve Markets
What’s VNI Mobile Fueling - 2012 the Americas Investor Day Reserve AprilMarkets 2, 2013 2011 6 data traffic was 8x the 2000 Internet data traffic Data center expansion 4G LTE network expansions Smart grid genesis OptiGrid Source = Cisco
Slide 50: Americas SWOT Analysis
AmericasEnd products expansion SWOT intouser cyclic Analysis andapps dealer Large Strengths loyalty scale Weaknesses programs energy storage South Stable, America Threats experienced New sharecompetitors Growth management inhibited Regulation/Sequestration team byApplication anti-trust limitations s
Slide 51: Americas Earnings
Americas Earnings Note: Operating ($ Net in Sales Millions, Earnings & Operating except excluding %)Earnings 16.0% highlighted 14.0% Net Sales items 15.9% ($8in 12.6% Millions) 13.0%$1,200 9.5%$1,083 12.0% $897 8.8% $831 80%.$841 $200$778 4.0%$800 $150$700 $141$400 $134$0 OEF’08 % $126 F’09$100 F’10
Slide 52: David Shaffer, President - EMEA
David Shaffer President - EMEA Investor Day April 2, 2013
Slide 53: EMEA Market and Drivers
Market uninterruptible Significant only. It excludes Drivers Share Asian EMEA power - the MP imports aerospace Economic $2.8 Power in Billion RP quality &activity Source: defense CYissues 2011 in BCI, market key in ~ 20% Eurobat developing markets and Asian service industry like Competitors countrie
Slide 54: EMEA Operations
EMEA Hagen, MP Nickel Switzerland, and?Operations Germany RP based Culham, Benelux, cellMP & production England Engineering and Russia A&D etc. Space RP Material Investor Eastern Zurich, battery handling Switzerland Europe Day Eng.April &Western / MP Assembly 2,?Hostomice, 2013 HQEurope Port 2Africa
Slide 55: EMEA Key Areas of Focus
EMEA Increase 2, 2013Key 3TPPL Areas RP of Large Focus scale Increased energy pricing storage Market ? OptiGrid leadership Nickel Avoid Zinc Market low margins based product regardless roadmaps of volume Start Changing and end customer with customers mix (Loyalty Alwaysprograms) promote total Produc
Slide 56: EMEA Key Areas of Focus (cont'd)
EMEA OE Keyto Areas 10%of Investor Focus (cont?d) Day AprilControl 2, 2013costs 4 Increase lead scrap reclaim and tolling Attrition/Automation in high cost countries Avoid vendor dependence Reduce SKU complexity End Result
Slide 57: EMEA SWOT Analysis
EMEA SWOT Widest product storage service Nickel - TPPLAnalysis Zinc coverage 4G /Continued LTEStrengths Weaknesses in Europe instability Market Port EMEA automation in share North lessand than Africa scale projects 10%and ofOE operations in MEHigh MPAusterity Hybrid OEM Brands, revenue Telecom measu
Slide 58: EMEA Earnings
EMEA $995 highlighted 2.5% Total$890 items Net $75 Sales Investor $65 & OE Operating Day%April $742Earnings 2,$64 2013 $616Net $800Sales $57Operating $684 $50 Earnings $46 $400 ($ $25 in $18 Millions)($ $0 $0 F’08 in Millions, F’09 F’10 except F’11 %) F’12 10.0% F’13 6.8% 9m F’08 6.6% F’09 6.4% F’10
Slide 59: Mark Tough, President - Asia
Mark Tough President - Asia Investor Day April 2, 2013
Slide 60: Geographical Coverage
Geographical Continent 4. North Coverage Asia Manage - Japan, Korea 5 geographical 5. South regions East Asia Sales, ? Singapore, Service, DC Indonesia 1. Australia, , Philippines, New Zealand Malaysia, andThailand Factory Pacific etc Singapore Regional Singapore HQ 2. Greater 6 HourChina Flight? ra
Slide 61: Asia Market Size and Acquisitions
Market Size Acquisitions Source: defense market BCI,Industrial Why industry andonly service reports Batteries 7% EnerSys revenue. andCY management 2011 environmental Investor Market Day estimates size April historical ~ 2, $2.7 based 2013 bln spending on 2(1)the Motive markets vs. competitor Power w
Slide 62: Competitors
Competitors Investor Day April 2, 2013 3
Slide 63: Motive Power Focus
Motive with markets Exploit no Power our footprint Addnew value Dynamics technologies intoJapan our Asia core Focus TPPL, accounts competency on price WiiQ, forweMove 23% Chargers get of aup premium global and Execute down fork for attruck the our an value operational products sales.chain China Buil
Slide 64: Reserve Power Strategy
Reserve cements strategy and technology contributes Power our long Dynamics products term to decline relationships Continued Newinphase volume focus China of investment and on environmental diversifying improvement in telecom legislation our in base earnings - China business enforcement Japan LTE,fr
Slide 65: Asia SWOT Analysis
Asia SWOT coverage Unstable Investor Day political Weaknesses Analysis Aprilenvironment 2, 2013 Strengths Price 6vs. Valuealue & Scale ofdecisions operations Business4Gbuilt two / LTEnew, onin Telecom large China,plants Australia, sectorinMarket China NZ Global Price diversification erosion part
Slide 66: Asia Earnings
Asia%Total OE excluding 2.1% highlighted Net $19Sales $20 & $205 items$200 Investor Operating $178Day $13 Earnings April $180 2, $12 Net 2013 $154 Sales 7 $11 Operating $137 $10 Earnings $150 $133 ($ in$3 Millions) $100 F’08 ($ inF’09 Millions, F’10 F’11 except F’12 %)F’13 15.0% 9m16.0% $0 F’08
Slide 67: Summary
Summary Wellpositioned forIndiaOpexModel Addingvaluetoourcorecompetency Tosupport inhighgrowthareainmanufacturing growthinMPbusiness drivesvalueandmarginEstablishment China(Gayou) andsaleschannel andIndiaprovide ofassembling Indiaprospects lowcostmanufacturing facilities aregood enablequickertimeto